To 10 year fix (mortgage)?

[DanTheMan]

I recently re-mortgaged and was tempted by a 10 year, but fixed for 5 instead at 1.34%. Rates will no doubt have gone up by then - possibly considerably - but I'd prefer the flexibility and option to take out equity at that point to re-invest elsewhere.

Can I ask where you got 1.34% for 5 years from? That's a great deal if the fees aren't extortionate.

 

[dlockers]

Well blow me down...

It appears Halifax have a "Home Hub" within the app which tells you your estimated home value based on the Halifax House Price Index as well as your LTV!

Let's face it, it's highly unlikely Halifax won't use their own Halifax House Price Index to value homes

Turns out I am:


I can renew without penalty in July (3 months before fixed term ends) so I may take a look when I get home.

Appreciate the advice @dLockers

Brill! Good news. I'll trust you my details for the commission payments

 

[Russinating]

Can I ask where you got 1.34% for 5 years from? That's a great deal if the fees aren't extortionate.

It's with TSB and it was an existing customer product. The code was 35AB but it doesn't look like it's available anymore; the lowest they're offering now is 1.99%.

All of that is good news to my ears, as I actually paid an early exit fee rather than waiting 1 month because I assumed rates would be going up (though the fee wasn't much, £1,300 from memory, due to the short amount of time left). I only completed on 11th Feb.

Their 10 year at the time was ~1.84% I think.

 

[dlockers]

Their 10 year at the time was ~1.84% I think.

Gives some insight into the gamble they are taking on variable. Maybe I'll YOLO and go fully variable

 

[413x]

It's with TSB and it was an existing customer product. The code was 35AB but it doesn't look like it's available anymore; the lowest they're offering now is 1.99%.

All of that is good news to my ears, as I actually paid an early exit fee rather than waiting 1 month because I assumed rates would be going up (though the fee wasn't much, £1,300 from memory, due to the short amount of time left). I only completed on 11th Feb.

Their 10 year at the time was ~1.84% I think.

Missed out on a 1.7 from tsb by 4 days. Went I wanted to wait for penalty to go from 2 pc to 1 pc. So annoyed.
Also a tsb existing customer

Going into Lloyd's this week to see if they still have thier 1.93 available. But I feel by time all checks etc are done it'll be too late.

 

[HungryHippos]

Can I ask where you got 1.34% for 5 years from? That's a great deal if the fees aren't extortionate.

I had the steal of the century late last year, 5Y fix for 1% + £999 fee, but that is basically looking unbeatable at this point.

 

[413x]

I had the steal of the century late last year, 5Y fix for 1% + £999 fee, but that is basically looking unbeatable at this point.

Yeah bar a few fractions of a percent that's a no brainer!

 

[Deleted member 651465]

We're currently on a 1.15% deal until early 2023 but I'm considering a 10 year fix next time round.

Lloyds are offering 1.86% for 10 years and I think we'll see interest rates above 2% by this time next year... given how long it can take with mortgage applications, I may start looking around Sept time.

 

[Mercenary Keyboard Warrior]

We're currently on a 1.15% deal until early 2023 but I'm considering a 10 year fix next time round.

Lloyds are offering 1.86% for 10 years and I think we'll see interest rates above 2% by this time next year... given how long it can take with mortgage applications, I may start looking around Sept time.

You probably want to check your current terms, you are often allowed out early, but the max is 1 or 3 months typically.
Then also check the validity period of a Lloyds mortgage offer, 3 or 6 months are pretty standard, but that could be less for a remortgage.

Take the two above and thats around the time you should be safe to apply for a remortgage in advance of your deal ending.
I haven't done one myself but people I know who have have had the process completed very quickly, normally around a month.
One of the factors to consider is solicitor, the remortgage company will often offer to pay this if you use their approved and as the paperwork is minimal not much reason not to.

The only real "risk" is likely to be valuation if you are on the cusp of a significant % LTV and they decide to low ball your valuation.

Worth looking at your current lender, and keeping an eye on their offerings, they will often waive fees if your signing up for a mortgage that would itself incur higher if you exited, and the switch can happen pretty much immediately.
It never hurts to call them up and discuss/check options.

 

[Deleted member 651465]

You probably want to check your current terms, you are often allowed out early, but the max is 1 or 3 months typically.
Then also check the validity period of a Lloyds mortgage offer, 3 or 6 months are pretty standard, but that could be less for a remortgage.

Take the two above and thats around the time you should be safe to apply for a remortgage in advance of your deal ending.
I haven't done one myself but people I know who have have had the process completed very quickly, normally around a month.
One of the factors to consider is solicitor, the remortgage company will often offer to pay this if you use their approved and as the paperwork is minimal not much reason not to.

The only real "risk" is likely to be valuation if you are on the cusp of a significant % LTV and they decide to low ball your valuation.

Worth looking at your current lender, and keeping an eye on their offerings, they will often waive fees if your signing up for a mortgage that would itself incur higher if you exited, and the switch can happen pretty much immediately.
It never hurts to call them up and discuss/check options.

Thanks for the advice

I remortgaged in the middle of COVID last year and it was horrendous... in fact, one provider took so long to get the paperwork sorted I defaulted to the SVR interest rate (£lol). I went with someone else and got it done in half the time which annoyed me as the whole debacle took 4 months longer than I thought it would.

 

[Mercenary Keyboard Warrior]

Thanks for the advice

I remortgaged in the middle of COVID last year and it was horrendous... in fact, one provider took so long to get the paperwork sorted I defaulted to the SVR interest rate (£lol). I went with someone else and got it done in half the time which annoyed me as the whole debacle took 4 months longer than I thought it would.

No worries.

COVID I hadn't taken into account in timescales
No way to really know I guess if a lender has a horrible backlog or not

 

[413x]

You probably want to check your current terms, you are often allowed out early, but the max is 1 or 3 months typically.
Then also check the validity period of a Lloyds mortgage offer, 3 or 6 months are pretty standard, but that could be less for a remortgage.

Take the two above and thats around the time you should be safe to apply for a remortgage in advance of your deal ending.
I haven't done one myself but people I know who have have had the process completed very quickly, normally around a month.
One of the factors to consider is solicitor, the remortgage company will often offer to pay this if you use their approved and as the paperwork is minimal not much reason not to.

The only real "risk" is likely to be valuation if you are on the cusp of a significant % LTV and they decide to low ball your valuation.

Worth looking at your current lender, and keeping an eye on their offerings, they will often waive fees if your signing up for a mortgage that would itself incur higher if you exited, and the switch can happen pretty much immediately.
It never hurts to call them up and discuss/check options.

Thanks. I might try this.

Current lender is 0.1 percent above the Lloyd's offer.
But if they waive the fee I'd happily jump on that.

(not ERC I know I can't get out of that)

Edit
Ffs. Its jumped significantly in last 5 days.
Not renewing with them

 

[413x]

Does anyone know at what point you actually get a rate confirmation?

Let's say I see a rate now Of 2pc
With another lender.
If I apply will I get the 2pc if its cleared?

Will it be some rate in the future If it rises?

 

[CapitalOne]

Does anyone know at what point you actually get a rate confirmation?

Let's say I see a rate now Of 2pc
With another lender.
If I apply will I get the 2pc if its cleared?

Will it be some rate in the future If it rises?

AFIAK you will need the Mortgage offer which will contain the rate to bake it in (for a fix, obv.)

 

[BUDFORCE]

Thanks for the advice

I remortgaged in the middle of COVID last year and it was horrendous... in fact, one provider took so long to get the paperwork sorted I defaulted to the SVR interest rate (£lol). I went with someone else and got it done in half the time which annoyed me as the whole debacle took 4 months longer than I thought it would.

Unfortunately, I think you have 6 months to register the complaint, but even so, I have worked for mortgage lenders like 15 years, any lender I worked for and that happened, and the delay was on the lender side, you have the right to complain and under FCA guidelines they take it seriously, almost certainly refund you the difference you paid in your previous fix rate Vs SVR to make up the difference in your loss.

How long ago was it?

 

[Deleted member 651465]

Unfortunately, I think you have 6 months to register the complaint, but even so, I have worked for mortgage lenders like 15 years, any lender I worked for and that happened, and the delay was on the lender side, you have the right to complain and under FCA guidelines they take it seriously, almost certainly refund you the difference you paid in your previous fix rate Vs SVR to make up the difference in your loss.

How long ago was it?

I'd have to check but it was September/October last year. I suspect they'll just argue it was "because of COVID".

What infuriated me was the web portal where they asked me to upload evidence etc had an audit trail and I could see that I'd upload a document on x day and I could see that it had been read but not processed. I had to chase a few times for an update as it was stuck on their end (forget the status message but something along the lines of "awaiting agent update").

 

[BUDFORCE]

I'd have to check but it was September/October last year. I suspect they'll just argue it was "because of COVID".

What infuriated me was the web portal where they asked me to upload evidence etc had an audit trail and I could see that I'd upload a document on x day and I could see that it had been read but not processed. I had to chase a few times for an update as it was stuck on their end (forget the status message but something along the lines of "awaiting agent update").

I'd 100% complain.

But it depends if you can be bothered and how much you were out of pocket due to their delays. Unless you went to some overseas lender, they will be regulated by the FCA, and there is a strict complaints proceedure they have to follow, EG, acknowledge your complaint within 5 working days, then give you a response within 8 weeks. If you are not happy with their response then you have the right to go to the ombudsman.

Mortgage lenders generally take these things seriously because they are quite hefty fines if they don't. I am not 100% saying they will give you a pay out, but if it were me I'd give it a go.

EDIT: The other thing to consider is, every complaint that gets escalated to the ombudsman, costs the lender £500 a time REGARDLESS on whether it is upheld or not, there are strange rules but something like the first ten are free, then £500 for X amount, then it goes up. So its in teh best interested of the lender to sort it out themselves.

Also, as funny as it sounds, mortgage lenders almost like have complaints registered, because if the lender has very few, the FCA can get a bit funny and look into it as they may be concerned the lender isnt correctly logging or recording their complaints, again, something they have to do under the regulation.

Just say due to the delays that were not your fault, you have been put in financial detriment.

 

[Scam]

Can I ask where you got 1.34% for 5 years from? That's a great deal if the fees aren't extortionate.

I had the steal of the century late last year, 5Y fix for 1% + £999 fee, but that is basically looking unbeatable at this point.

1% was surely the winner! We fixed for 5yrs at 1.24% with Nationwide last June. £1499 product fee which we're still arguing for a refund on because they got our address wrong (right road name, completely different postcode in London) and sent paperwork to it. Idiots, waiting to hear what the ombudsman says..

EDIT: If you can fix for 10yrs under 2%, I'd definitely be tempted. It certainly seems the only way is up from where we are now... But I'm no expert..

 

[HungryHippos]

1.24% on 5 years is still pretty good, I hope to be in a position in 5 years time to clear a bunch of it off, so that the remainder doesn't matter as much if it's a bit higher.

 

[IvanDobskey]

10 years is just too long, so many things can change in that timespan. Also, you are restricted to 10% overpayments a year, so if you come into a chunk of money, you can't just pay it off the mortgage. For me, 5 years is the longest I'd consider fixing.